HRI
Herc Holdings Inc.
Rental & Leasing Services
Market Cap$4.41B
5Y Perf.+363.0%
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Stock Comparison
HRI vs MGRC
Revenue, margins, valuation, and 5-year total return — side by side.
MGRC
McGrath RentCorp
Rental & Leasing Services
Market Cap$2.81B
5Y Perf.+105.0%
HRI vs MGRC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | HRI | MGRC |
|---|---|---|
| Industry | Rental & Leasing Services | Rental & Leasing Services |
| Market Cap | $4.41B | $2.81B |
| Revenue (TTM) | $4.65B | $947M |
| Net Income (TTM) | $-5M | $155M |
| Gross Margin | 29.2% | 45.9% |
| Operating Margin | 16.4% | 25.5% |
| Forward P/E | 22.1x | 17.7x |
| Total Debt | $11.16B | $528M |
| Cash & Equiv. | $52M | $295K |
HRI vs MGRC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
HRI
MGRC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Herc Holdings Inc. (HRI) | 100 | 463.0 | +363.0% |
| McGrath RentCorp (MGRC) | 100 | 205.0 | +105.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HRI vs MGRC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MGRC leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Herc Holdings Inc. is the stronger pick specifically for growth and revenue expansion and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
HRI
Herc Holdings Inc.
The Growth Play
HRI is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 22.6%, EPS growth -99.6%, 3Y rev CAGR 16.9%
- 445.9% 10Y total return vs MGRC's 401.5%
- 22.6% revenue growth vs MGRC's 3.7%
Best for: growth exposure and long-term compounding
MGRC
McGrath RentCorp
The Income Pick
MGRC carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 36 yrs, beta 0.87, yield 1.7%
- Lower volatility, beta 0.87, Low D/E 42.7%, current ratio 1.36x
- Beta 0.87, yield 1.7%, current ratio 1.36x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HRI | 22.6% revenue growth vs MGRC's 3.7% |
| Value | MGRC | Lower P/E (17.7x vs 22.1x) |
| Quality / Margins | MGRC | 16.4% margin vs HRI's -0.1% |
| Stability / Safety | MGRC | Beta 0.87 vs HRI's 2.02, lower leverage |
| Dividends | HRI | 2.1% yield, 4-year raise streak, vs MGRC's 1.7% |
| Momentum (1Y) | HRI | +18.2% vs MGRC's +6.3% |
| Efficiency (ROA) | MGRC | 6.6% ROA vs HRI's -0.0%, ROIC 10.5% vs 5.2% |
HRI vs MGRC — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
HRI vs MGRC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMGRCLAGGINGHRI
HRIHerc Holdings Inc.
2leads
MGRCMcGrath RentCorp
3leads
6 Total Categories
CATEGORYLEADERvs HRIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
MGRC5/6
Valuation MetricsMultiples, price ratios, and targets
HRI3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MGRC9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
HRI4/6
Risk & VolatilityBeta, volatility, and downside exposure
MGRC2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
MGRC leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
HRI is the larger business by revenue, generating $4.7B annually — 4.9x MGRC's $947M. MGRC is the more profitable business, keeping 16.4% of every revenue dollar as net income compared to HRI's -0.1%. On growth, HRI holds the edge at +32.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HRIHerc Holdings Inc. | MGRCMcGrath RentCorp |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $947M |
| EBITDAEarnings before interest/tax | $1.3B | $350M |
| Net IncomeAfter-tax profit | -$5M | $155M |
| Free Cash FlowCash after capex | $150M | $196M |
| Gross MarginGross profit ÷ Revenue | +29.2% | +45.9% |
| Operating MarginEBIT ÷ Revenue | +16.4% | +25.5% |
| Net MarginNet income ÷ Revenue | -0.1% | +16.4% |
| FCF MarginFCF ÷ Revenue | +3.2% | +20.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +32.3% | +1.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -14.3% | -4.3% |
MGRC leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
HRI leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 18.0x trailing earnings, MGRC trades at a 100% valuation discount to HRI's 4123.8x P/E. On an enterprise value basis, HRI's 8.9x EV/EBITDA is more attractive than MGRC's 9.5x.
| Metric | HRIHerc Holdings Inc. | MGRCMcGrath RentCorp |
|---|---|---|
| Market CapShares × price | $4.4B | $2.8B |
| Enterprise ValueMkt cap + debt − cash | $15.5B | $3.3B |
| Trailing P/EPrice ÷ TTM EPS | 4123.75x | 18.00x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.09x | 17.66x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.04x |
| EV / EBITDAEnterprise value multiple | 8.87x | 9.50x |
| Price / SalesMarket cap ÷ Revenue | 1.01x | 2.97x |
| Price / BookPrice ÷ Book value/share | 2.13x | 2.28x |
| Price / FCFMarket cap ÷ FCF | — | 13.29x |
HRI leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
MGRC leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
MGRC delivers a 12.8% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $-0 for HRI. MGRC carries lower financial leverage with a 0.43x debt-to-equity ratio, signaling a more conservative balance sheet compared to HRI's 5.73x. On the Piotroski fundamental quality scale (0–9), MGRC scores 6/9 vs HRI's 3/9, reflecting solid financial health.
| Metric | HRIHerc Holdings Inc. | MGRCMcGrath RentCorp |
|---|---|---|
| ROE (TTM)Return on equity | -0.3% | +12.8% |
| ROA (TTM)Return on assets | -0.0% | +6.6% |
| ROICReturn on invested capital | +5.2% | +10.5% |
| ROCEReturn on capital employed | +6.6% | +11.3% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 5.73x | 0.43x |
| Net DebtTotal debt minus cash | $11.1B | $528M |
| Cash & Equiv.Liquid assets | $52M | $295,000 |
| Total DebtShort + long-term debt | $11.2B | $528M |
| Interest CoverageEBIT ÷ Interest expense | 1.27x | 8.35x |
MGRC leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
HRI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MGRC five years ago would be worth $14,905 today (with dividends reinvested), compared to $12,723 for HRI. Over the past 12 months, HRI leads with a +18.2% total return vs MGRC's +6.3%. The 3-year compound annual growth rate (CAGR) favors HRI at 11.1% vs MGRC's 9.9% — a key indicator of consistent wealth creation.
| Metric | HRIHerc Holdings Inc. | MGRCMcGrath RentCorp |
|---|---|---|
| YTD ReturnYear-to-date | -12.9% | +9.6% |
| 1-Year ReturnPast 12 months | +18.2% | +6.3% |
| 3-Year ReturnCumulative with dividends | +37.3% | +32.7% |
| 5-Year ReturnCumulative with dividends | +27.2% | +49.0% |
| 10-Year ReturnCumulative with dividends | +445.9% | +401.5% |
| CAGR (3Y)Annualised 3-year return | +11.1% | +9.9% |
HRI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
MGRC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
MGRC is the less volatile stock with a 0.87 beta — it tends to amplify market swings less than HRI's 2.02 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MGRC currently trades 89.0% from its 52-week high vs HRI's 70.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HRIHerc Holdings Inc. | MGRCMcGrath RentCorp |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.02x | 0.87x |
| 52-Week HighHighest price in past year | $188.35 | $128.41 |
| 52-Week LowLowest price in past year | $88.45 | $94.99 |
| % of 52W HighCurrent price vs 52-week peak | +70.1% | +89.0% |
| RSI (14)Momentum oscillator 0–100 | 64.0 | 50.3 |
| Avg Volume (50D)Average daily shares traded | 615K | 213K |
MGRC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — HRI and MGRC each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates HRI as "Buy" and MGRC as "Buy". Consensus price targets imply 39.0% upside for HRI (target: $183) vs 22.5% for MGRC (target: $140). For income investors, HRI offers the higher dividend yield at 2.10% vs MGRC's 1.70%.
| Metric | HRIHerc Holdings Inc. | MGRCMcGrath RentCorp |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $183.40 | $140.00 |
| # AnalystsCovering analysts | 17 | 5 |
| Dividend YieldAnnual dividend ÷ price | +2.1% | +1.7% |
| Dividend StreakConsecutive years of raises | 4 | 36 |
| Dividend / ShareAnnual DPS | $2.77 | $1.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | 0.0% |
Evenly matched — HRI and MGRC each lead in 1 of 2 comparable metrics.
Key Takeaway
MGRC leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). HRI leads in 2 (Valuation Metrics, Total Returns). 1 tied.
Best OverallMcGrath RentCorp (MGRC)Leads 3 of 6 categories
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HRI vs MGRC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HRI or MGRC a better buy right now?
For growth investors, Herc Holdings Inc.
(HRI) is the stronger pick with 22. 6% revenue growth year-over-year, versus 3. 7% for McGrath RentCorp (MGRC). McGrath RentCorp (MGRC) offers the better valuation at 18. 0x trailing P/E (17. 7x forward), making it the more compelling value choice. Analysts rate Herc Holdings Inc. (HRI) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — HRI or MGRC?
On trailing P/E, McGrath RentCorp (MGRC) is the cheapest at 18.
0x versus Herc Holdings Inc. at 4123. 8x. On forward P/E, McGrath RentCorp is actually cheaper at 17. 7x.
03Which is the better long-term investment — HRI or MGRC?
Over the past 5 years, McGrath RentCorp (MGRC) delivered a total return of +49.
0%, compared to +27. 2% for Herc Holdings Inc. (HRI). Over 10 years, the gap is even starker: HRI returned +445. 9% versus MGRC's +401. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HRI or MGRC?
By beta (market sensitivity over 5 years), McGrath RentCorp (MGRC) is the lower-risk stock at 0.
87β versus Herc Holdings Inc. 's 2. 02β — meaning HRI is approximately 133% more volatile than MGRC relative to the S&P 500. On balance sheet safety, McGrath RentCorp (MGRC) carries a lower debt/equity ratio of 43% versus 6% for Herc Holdings Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — HRI or MGRC?
By revenue growth (latest reported year), Herc Holdings Inc.
(HRI) is pulling ahead at 22. 6% versus 3. 7% for McGrath RentCorp (MGRC). On earnings-per-share growth, the picture is similar: McGrath RentCorp grew EPS -32. 7% year-over-year, compared to -99. 6% for Herc Holdings Inc.. Over a 3-year CAGR, HRI leads at 16. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — HRI or MGRC?
McGrath RentCorp (MGRC) is the more profitable company, earning 16.
6% net margin versus 0. 0% for Herc Holdings Inc. — meaning it keeps 16. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGRC leads at 25. 9% versus 15. 3% for HRI. At the gross margin level — before operating expenses — MGRC leads at 46. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is HRI or MGRC more undervalued right now?
On forward earnings alone, McGrath RentCorp (MGRC) trades at 17.
7x forward P/E versus 22. 1x for Herc Holdings Inc. — 4. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HRI: 39. 0% to $183. 40.
08Which pays a better dividend — HRI or MGRC?
All stocks in this comparison pay dividends.
Herc Holdings Inc. (HRI) offers the highest yield at 2. 1%, versus 1. 7% for McGrath RentCorp (MGRC).
09Is HRI or MGRC better for a retirement portfolio?
For long-horizon retirement investors, McGrath RentCorp (MGRC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
87), 1. 7% yield, +401. 5% 10Y return). Herc Holdings Inc. (HRI) carries a higher beta of 2. 02 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MGRC: +401. 5%, HRI: +445. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between HRI and MGRC?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: HRI is a small-cap high-growth stock; MGRC is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(HRI: 32.3% · MGRC: 1.6%)P/E Ratio<
x
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